Indiabulls Housing Finance Repays Bonds, Enters Positive Growth Phase

29 Aug 2023 , 12:10 PM

Indiabulls Housing Finance repaid INR 1,125 million in bonds borrowed in August 2013. The repayments included 10-year monies and five-year External Commercial Borrowings (ECBs) settled last week.

This quarter (Q2FY2023-24) stands out for significant debt servicing. The company now enters a positive Asset Liability Management (ALM) phase. Loan inflows will exceed debt repayments by INR 13,000 million to INR 18,000 million each quarter. These excess funds will be used for asset growth.

Indiabulls Housing follows a proactive approach to maintain liquidity for covering debt repayments. The company uses balance sheet liquidity to pre-pay or buy back debt within regulations.

For situations like ECBs, where usage is restricted, trustee-managed Fixed Deposits (FDs) are created. The focus now shifts towards growth, with surplus collections for asset expansion. Co-lending relationships with 8 partner banks have become strategic, contributing significantly to their disbursals.

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